Teknovus 2Q07 update

2Q'07 was a strong quarter for Teknovus particularly for EPON chips. The company revenues for this quarter were in the range of $10-15 million - obviously all of them coming from the Optical Networking chips.

Some of the prominent customers that contributed to 2Q07 revenues were Mitsubishi, Suminet, Salira, Ocean Broadband, Furukawa, Fujitsu and Samsung. This quarter Teknovus announced deployment for Chunghwa Telecom and China Telecom. Japan and Korea have started to deploy EPON and China continues to grow steadily.

Teknovus has a strong base in Asia-Pac and with these countries aggressively going for EPON deployments, the revenues are growing steadily. The company also offers lower FTTx cost per subscriber than VDSL, so has an edge. In US as well, a cable operator also began to deploy PON over Teknovus EPON chips in this quarter.

In terms of geographic split, our estimates are 80% APAC with US contributing the remaining.